Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
Q. Liquid asset is determined by
a. Current asset - stock - prepaid expense
b. Current asset + Stock +prepaid expense
c. Current asset + prepaid expense
d. None of the above
Q. Which of the following is not included in current assets.
a. Debtors
b. Stock
c. Cash at bank
d. Cash in hand
Q. Liquidity ratios are expressed in
a. Pure ratio form
b. Percentage
c. Rate or time
d. None of the above
Q. Working capital turnover ratio can be determined by :
a. ( Gross profit / Working capital )
b. ( Cost of goods sold / Net sales )
c. ( Cost of goods sold / Working capital)
d. None of the above
Q. Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
a. 5 times
b. 6 times
c. 3 times
d. 1.5 times
Q. The ratio analysis is helpful to management in taking several decisions, but asa mechanical substitute for judgement and thinking, it is worse than useless.
a. True
b. False
c. may be false
d. both a and b
Q. Profit for the objective of calculating a ratio may be taken as
a. Profit before tax but after interest
b. Profit before interest &tax
c. Profit after interest & tax
d. All the above
Q. If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
a. 24%
b. 416%
c. 60%
d. None of the above
Q. Financial Statement Analysis can be used for assessment of past performanceonly.
a. false
b. true
c. either true or false
d. only true
Q. Ratio analysis is an important means of expressing the relationship between two numbers.
a. true
b. false
c. may be false
d. a and b both
Q. Liquid Ratio is also known as 2:1 ratio.
a. false
b. true
c. either true or false
d. none of the above
Q. Current ratio indicates the solvency position of the business.
a. true
b. false
c. may be false
d. a and b